• Login
View Item 
  • DASH Home
  • Harvard Kennedy School
  • HKS Center for International Development
  • View Item
  • DASH Home
  • Harvard Kennedy School
  • HKS Center for International Development
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

All of DASH
  • Communities & Collections
  • By Issue Date
  • Author
  • Title
  • Keyword
  • FAS Department
This Collection
  • By Issue Date
  • Author
  • Title
  • Keyword

Submitters

  • Login
  • Quick submit
  • Waiver Generator

About

  • About DASH
  • DASH Stories
  • DASH FAQs
  • Accessibility
  • COVID-related Research
  • Terms of Use
  • Privacy Policy

Statistics

  • By Schools
  • By Collections
  • By Departments
  • By Items
  • By Country
  • By Authors

Is Grameen Lending Efficient?

 
Thumbnail
View/Open
040.pdf (268.0Kb)
Author
Rai, Ashok S.
Sjöstrom, Tomas
Published Version
https://www.hks.harvard.edu/centers/cid/publications
Metadata
Show full item record
Citation
Rai, Ashok S., and Thomas Sjöstrom. “Is Grameen Lending Efficient?” CID Working Paper Series 2000.40, Harvard University, Cambridge, MA, December 2001.
Abstract
Many believe that a key innovation by the Grameen Bank is to encourage its borrowers to help each other in hard times. To analyze this we study a novel mechanism design problem where borrowers share information about each other, but their limited side contracting ability prevents them from writing complete insurance contracts. We derive a lending mechanism which efficiently induces mutual insurance. It is necessary for borrowers to submit reports about each other to achieve efficiency. Such cross reporting increases the bargaining power of unsuccessful borrowers, and is robust to collusion against the bank.
Terms of Use
This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page
http://nrs.harvard.edu/urn-3:HUL.InstRepos:39477716

Collections
  • HKS Center for International Development [534]

Contact administrator regarding this item (to report mistakes or request changes)

Follow us on TwitterFollow us on FacebookFollow us on Google+

e: osc@harvard.edu

t: +1 (617) 495 4089

f: +1 (617) 495 0370

© 2018 President and Fellows of Harvard College
  • DASH
  • ETDs@Harvard
  • Copyright First Responders
  • HOPE
  • Contact
  • Harvard Library
  • Harvard University